Hewlett Packard Enterprise plans to cut workers by 10 percent

Hewlett Packard Enterprise Co. is set to reduce its staff by 10 percent, or at least 5,000 employees. According to close sources, the plan is in a bid to reduce expenses as competition sets in.

The reduction is envisaged to begin before the year runs out, and this was disclosed by anonymous people who want to keep their matter private. The decrease in the enterprise’s workforce which has about 50,000 will most likely affect the U.S workers, including managers. While requests for comments were made, a representative of the Hewlett Packard Enterprise failed to respond quickly.

Since 2015, the CEO Meg Whitman has been jettisoning divisions such as printers, PC, key software units, and business services. The motive of the proposed reduction is to make HPE fit into the industry under the forces of cloud service providers like Alphabet Inc. Amazon.com Inc. and Google.

CEO speech earlier

Earlier this month, Whitman was speaking with an analyst, she said the Palo Alto, a California-based firm is getting benefits from the increasing demand across the major areas of the business. Also, she stated that she’s working to cut layers in the firm and to become more effective.

Whitman added that more narrowed business strategies would give the opportunity to make for an internal structure and operating method that is simpler, faster and nimbler. During the same call with the analyst, the Chief Financial Officer, Tim Stonesifer stated the firm is hoping to hit $1.5 billion in savings over a period of three years.